APPRENTICESHIP WAGE INCREASE

IMPORTANT UPDATE

A message from Gavin Smith, Employer Services Director, National Apprenticeship Service (NAS).

The minimum weekly wage for all apprentices in England will be increased from £80 to £95 from August 1st 2009. This requirement was built into the 2009/10 contracts for Apprenticeships.

The rise, announced in September 2009 by the then Secretary of State for Innovation, Universities and Skills, John Denham, and the Secretary of State for Children, Schools and the Families, Ed Balls, followed a review by DIUS and DCSF of apprentice pay.

All apprentices aged 16-18, and those aged 19 and over in their first year as an apprentice are exempt from being paid the National Minimum Wage. In 2005 the Learning and Skills Council introduced a requirement that employers pay apprentices a minimum of at least £80 per week. The average net earnings of an apprentice each week is now around £170, but the Government wants to ensure that the earnings of all apprentices are fair and that they should reflect the support given to young people pursuing other qualifications. The new minimum weekly apprenticeship wage of £95 has been re-calculated to match the package of allowances and benefits that young people might receive were they in full-time education or unwaged training. We estimate that around 10 per cent of apprentices are affected, concentrated largely in the hairdressing and early years sectors.

If you have any queries about this message, please contact the ITS Ltd office in Horndean on 02392 591666.